Exercise
Answer TRUE or FALSE
1. _____ Broker-dealers are permitted to use customer testimonials in their advertisements.
2. _____ Investment adviser representatives can never use references or past recommendations as part of their advertising efforts.
3. _____ Graphs and charts are prohibited from advertisements for investment advisers and investment adviser representatives.
4. _____ Broker-dealers operating within a bank setting should always offer their services in an area distinct from where regular banking activity takes place.
5. _____ As long as an agent selling shares of a mutual fund delivers a final prospectus before a given sales date, full disclosure has been provided.
Answers
1. True. Broker-dealers may use customer testimonials; investment advisers may only use third-party testimonials in specific instances.
2. False. An investment adviser representative can use referen